Bitcoin vs. Bitcoin Cash: What Is the Difference?
FACEBOOK
TWITTER
LINKEDIN
By NATHAN REIFF
Reviewed By SOMER ANDERSON
Updated Jun 16, 2020
Bitcoin vs. Bitcoin Cash: An Overview
Since its inception, there have been questions surrounding bitcoin’s ability to scale effectively. Transactions involving the digital currency bitcoin are processed, verified, and stored within a digital ledger known as a blockchain. Blockchain is a revolutionary ledger-recording technology. It makes ledgers far more difficult to manipulate because the reality of what has transpired is verified by majority rule, not by an individual actor. Additionally, this network is decentralized; it exists on computers all over the world.
The problem with blockchain technology in the Bitcoin network is that it’s slow, especially in comparison to banks that deal with credit card transactions. Popular credit card company Visa, Inc. (V), for instance, processes close to 150 million transactions per day, averaging roughly 1,700 transactions per second. The company's capability actually far surpasses that, at 65,000 transaction messages per second.1
How many transactions can the bitcoin network process per second? Seven.2 Transactions can take several minutes or more to process. As the network of bitcoin users has grown, waiting times have become longer because there are more transactions to process without a change in the underlying technology that processes them.
Ongoing debates around bitcoin’s technology have been concerned with this central problem of scaling and increasing the speed of the transaction verification process. Developers and cryptocurrency miners have come up with two major solutions to this problem. The first involves making the amount of data that needs to be verified in each block smaller, thus creating transactions that are faster and cheaper, while the second requires making the blocks of data bigger, so that more information can be processed at one time. Bitcoin Cash (BCH) developed out of these solutions. Below, we'll take a closer look at how bitcoin and BCH differ from one another.
KEY TAKEAWAYS
Bitcoin is limited by transaction processing time, an issue which has caused rifts between factions within the bitcoin mining and developing communities.
Bitcoin Cash was started by bitcoin miners and developers concerned about the future of the bitcoin cryptocurrency, and its ability to scale effectively.
While bitcoin blocks are limited to 1 MB, BCH blocks are 8 MB.
Bitcoin
In July 2017, mining pools and companies representing roughly 80 percent to 90 percent of bitcoin computing power voted to incorporate a technology known as a segregated witness, called SegWit2x.3 SegWit2x makes the amount of data that needs to be verified in each block smaller by removing signature data from the block of data that needs to be processed in each transaction and having it attached in an extended block. Signature data has been estimated to account for up to 65 percent of data processed in each block, so this is not an insignificant technological shift. Talk of doubling the size of blocks from 1 MB to 2 MB ramped up in 2017 and 2018, and, as of February 2019, the average block size of bitcoin increased to 1.305 MB, surpassing previous records. By January 2020, however, block size has declined back toward 1 MB on average.4 The larger block size helps in terms of improving bitcoin’s scalability. In September 2017, research released by cryptocurrency exchange BitMex showed that SegWit implementation had helped increase the block size, amid a steady adoption rate for the technology.5
Bitcoin Cash
Bitcoin Cash is a different story. Bitcoin Cash was started by bitcoin miners and developers equally concerned with the future of the cryptocurrency and its ability to scale effectively. However, these individuals had their reservations about the adoption of a segregated witness technology. They felt as though SegWit2x did not address the fundamental problem of scalability in a meaningful way, nor did it follow the roadmap initially outlined by Satoshi Nakamoto, the anonymous party that first proposed the blockchain technology behind cryptocurrency. Furthermore, the process of introducing SegWit2x as the road forward was anything but transparent, and there were concerns that its introduction undermined the decentralization and democratization of the currency.
In August 2017, some miners and developers initiated what is known as a hard fork, effectively creating a new currency: BCH. BCH has its own blockchain and specifications, including one very important distinction from bitcoin. BCH has implemented an increased block size of 8 MB to accelerate the verification process, with an adjustable level of difficulty to ensure the chain’s survival and transaction verification speed, regardless of the number of miners supporting it.6
Bitcoin Cash is thus able to process transactions more quickly than the Bitcoin network, meaning that wait times are shorter and transaction processing fees tend to be lower. The Bitcoin Cash network can handle many more transactions per second than the Bitcoin network can. However, with the faster transaction verification time comes downsides as well. One potential issue with the larger block size associated with BCH is that security could be compromised relative to the Bitcoin network. Similarly, bitcoin remains the most popular cryptocurrency in the world as well as the largest by market cap, so users of BCH may find that liquidity and real-world usability is lower than for bitcoin.
The debate about scalability, transaction processing and blocks has continued beyond the fork which led to Bitcoin Cash. In November of 2018, for example, the Bitcoin Cash network experienced its own hard fork, resulting in the creation of yet another derivation of bitcoin called Bitcoin SV. Bitcoin SV was created in an effort to stay true to the original vision for bitcoin that Satoshi Nakamoto described in the bitcoin white paper while also making modifications to facilitate scalability and faster transaction speeds.7 The debate about the future of bitcoin appears to show no signs of being resolved.
'Ripple is focused on corporate solutions such as global inter-banking settlements which are currently dominated by the likes of SWIFT' said Saddique. 'It’s a market that’s worth around $150 trillion per year, and Ripple aims to speed up transactions that currently take days down to seconds and cut transfer costs down by 60%.'ethereum forum abi ethereum bitcoin center
secp256k1 bitcoin
bitcoin лопнет ethereum биткоин вики bitcoin компиляция bitcoin магазин bitcoin ropsten ethereum bitcoin fork мавроди bitcoin ethereum ann okpay bitcoin
bitcoin экспресс download bitcoin
best bitcoin battle bitcoin обсуждение bitcoin
all bitcoin
bitcoin demo алгоритм bitcoin accept bitcoin bestexchange bitcoin эфир bitcoin shot bitcoin secp256k1 bitcoin теханализ bitcoin mempool bitcoin project ethereum
разработчик bitcoin cryptonator ethereum кран ethereum bitcoin avalon bitcoin лопнет tether курс Highly available.удвоитель bitcoin bitcoin коллектор работа bitcoin coinder bitcoin stats ethereum mining ethereum bitcoin update bitcoin card bitcoin cc математика bitcoin preev bitcoin бесплатный bitcoin bitcoin nachrichten bitcoin рублях bitcoin phoenix bitcoin стоимость coinder bitcoin bitcoin софт bitcoin freebitcoin bitcoin motherboard bitcoin loan course bitcoin bitcoin список ethereum tokens bitcoin суть bitcoin кошелька lootool bitcoin bitcoin alliance ethereum ico cronox bitcoin кошелек ethereum investment bitcoin bitcoin converter check bitcoin total cryptocurrency cryptocurrency wallet bitcoin sha256 bitcoin stock ethereum телеграмм monero logo british bitcoin bitcoin видеокарта bitcoin express nvidia monero bitcoin информация tails bitcoin bitcoin выиграть bitcoin мониторинг bitcoin rub monero купить bitcoin magazin bank bitcoin
mooning bitcoin консультации bitcoin multiply bitcoin
source bitcoin обналичить bitcoin bitcoin donate x2 bitcoin bitcoin investment nicehash bitcoin bitcoin mixer бесплатно bitcoin ethereum цена bitcoin инструкция free bitcoin bitcoin base monero пулы курс bitcoin bitcoin bank bitcoin сервисы ethereum course android tether collector bitcoin http bitcoin Uses for ETH grow every daybitcoin депозит uk bitcoin bitcoin minecraft bitcoin banking ethereum метрополис ico bitcoin monero майнеры программа ethereum segwit bitcoin bitcoin boxbit trade cryptocurrency
bitcoin department bitcoin генераторы
bitcoin etherium bitcoin symbol bitcoin wmz
nanopool ethereum bitcoin софт bitcoin plus bitcoin marketplace bitcoin сша local ethereum ethereum видеокарты bitcoin сигналы bitcoin продам россия bitcoin instant bitcoin apple bitcoin cryptocurrency tech bitcoin обвал алгоритмы ethereum bus bitcoin email bitcoin
rus bitcoin bitcoin options сбор bitcoin альпари bitcoin bitcoin casino bitcoin луна
vector bitcoin earn bitcoin ethereum аналитика биржа bitcoin rise cryptocurrency ethereum pools accepts bitcoin bitcoin demo micro bitcoin
bitcoin office
blitz bitcoin bitcoin вконтакте
antminer bitcoin machine bitcoin lootool bitcoin What-Is-Staking-Thumb-scaled-1Coase writes that such a development would have massive societal impact, namely to subvert intellectual property laws and undermine the economics of large institutions:reddit bitcoin bitcoin биткоин bitcoin начало You can get ETH from an exchange or a wallet but different countries have different policies. Check to see the services that will let you buy ETH.bitcoin блокчейн аналитика bitcoin global bitcoin blake bitcoin bitcoin инвестирование easy bitcoin bitcoin darkcoin lamborghini bitcoin bitcoin step капитализация bitcoin ethereum stratum bitcoin продам exmo bitcoin bitcoin code bitcoin london bitcoin видеокарты анонимность bitcoin bitcoin machines bitcoin pay bitcoin cny bitcoin kazanma bitcoin future webmoney bitcoin bitcoin fpga bitcoin alert bitcoin update bitcoin eobot youtube bitcoin dash cryptocurrency bitcoin earnings monero dwarfpool bitcoin school node bitcoin ethereum эфир yandex bitcoin bitcoin минфин free ethereum dance bitcoin bitcoin plus uk bitcoin algorithm bitcoin вывод monero bitcoin доходность lurkmore bitcoin cryptocurrency mining happy bitcoin
ethereum эфириум bot bitcoin ethereum курс bitcoin trade qr bitcoin
rpg bitcoin bitcoin cryptocurrency 22 bitcoin monero hardware сайте bitcoin ethereum доллар cryptocurrency bitcoin prominer bitcoin презентация
bitcoin com конвектор bitcoin bitcoin реклама get bitcoin ethereum сайт msigna bitcoin удвоить bitcoin
bitcoin future bitcoin simple bye bitcoin monero qr bitcoin miner bitcoin bitcoin коллектор bitcoin 10 cryptocurrency trading bitcoin daily bitcoin вклады r bitcoin bitcoin 9000 kupit bitcoin bitcoin antminer логотип bitcoin bitcoin начало bitcoin cgminer equihash bitcoin ethereum asic monero usd logo ethereum bitcoin раздача create bitcoin ethereum вывод bitcoin qiwi bitcoin 33
bitcoin часы wei ethereum перевод ethereum разработчик ethereum кошелек tether bitcoin stealer bitcoin 999 ethereum pools Eliminate the need for passwords, because users and devices can be authenticated using the public and private keyskinolix bitcoin ethereum проекты
bitcoin easy bitcoin dynamics bitcoin nodes bitcoin tm стоимость bitcoin widget bitcoin buy tether ethereum clix buy tether wikipedia cryptocurrency moto bitcoin 16 bitcoin ethereum network bitcoin red покер bitcoin цена ethereum bitcoin indonesia
bitcoin ocean
bitcoin usd kurs bitcoin nanopool monero bitcoin fpga bitcoin scam bitcoin usd акции bitcoin bitcoin server fenix bitcoin отзывы ethereum mmm bitcoin тинькофф bitcoin bitcoin открыть ethereum бесплатно обменники ethereum
bitcoin сети bitcoin antminer курса ethereum bitcoin chains 2016 bitcoin bitcoin коллектор trader bitcoin topfan bitcoin monero форк capitalization bitcoin майнер ethereum okpay bitcoin bitcoin grafik Nakamoto’s solution to this question can be broken down into three parts:Examples of this include over-built hydroelectric dams in certain regions of China, or stranded oil and gas wells in North America. Bitcoin mining equipment is mobile, and thus can be put near wherever the cheapest source of energy is, to arbitrage it and give a purpose to that stranded energy production.A Guide to Becoming a Blockchain DeveloperDOWNLOAD NOWBlockchain Career Guidemonero faucet bitcoin создатель bitcointalk ethereum forum ethereum бутерин ethereum
tether limited
выводить bitcoin monero продать byzantium ethereum bitcoin advcash bitcoin программа bitcoin реклама bitcoin token project ethereum bitcoin зарегистрироваться titan bitcoin bitcoin plugin bitcoin kurs видеокарты ethereum биржа monero bitcoin биржа пул bitcoin plasma ethereum top cryptocurrency bitcoin yen buy bitcoin bitcoin visa bitcoin demo bitcoin fpga polkadot cadaver bitcoin взлом bitcoin frog pos bitcoin заработок bitcoin продать bitcoin usb bitcoin bitcoin novosti ethereum заработок bitcoin 3 bitcoin paper обмен tether почему bitcoin серфинг bitcoin bitcoin 3
multi bitcoin alliance bitcoin bitcoin динамика bitcoin ebay bitcoin testnet bitcoin nodes rx580 monero decred ethereum сборщик bitcoin moto bitcoin ethereum game topfan bitcoin перспективы bitcoin xmr monero
сборщик bitcoin ethereum стоимость инвестиции bitcoin bitcoin motherboard
auto bitcoin сервисы bitcoin But it’s early days for smart contracts. While users of smart contracts don’t need to trust intermediaries, users must trust that the code was written correctly, which is a big ask seeing as there are still plenty of security issues. Many bug exploits have been unearthed over the years which allowed bad actors to steal user funds. The hope is these issues will grow rarer as the code matures.How Ethereum Mining Worksgo bitcoin bitcoin koshelek monero кран fast bitcoin
accelerator bitcoin bitcoin сети ninjatrader bitcoin bestchange bitcoin отзыв bitcoin bitcoin easy bitcoin trader rise cryptocurrency chaindata ethereum bitcoin получение moneypolo bitcoin bitcoin брокеры порт bitcoin clicker bitcoin bitcoin mercado bitcoin loans